Lincoln Electric HoldingsLECO -0.07%97 ROA % is 14.21% as of Mar. 2026, which is 16% above its 10-year median of 12.25. GuruFocus rates LECO with a GF Score™ of 97/100 and a GF Value™ of $236.84 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 3,081 Industrial Products companies, Lincoln Electric Holdings ranks better than 94.81% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Lincoln Electric Holdings's annualizedNet Income for the quarter that ended in Mar. 2026 was $546 Mil.
Lincoln Electric Holdings's average Total Assets over the quarter that ended in Mar. 2026 was $3,839 Mil. Therefore, Lincoln Electric Holdings's annualized ROA % for the quarter that ended in Mar. 2026 was 14.21%.
The historical rank and industry rank for Lincoln Electric Holdings's ROA % or its related term are showing as below:
LECO'
s ROA % Range Over the Past 10 Years
Min: 8.8 Med: 12.25 Max: 16.63
Current: 14.29
During the past 13 years, Lincoln Electric Holdings's highest ROA % was 16.63%. The lowest was 8.80%. And the median was 12.25%.
LECO's ROA % is ranked better than 94.81% of 3081
companies
in the Industrial Products industry
Industry Median: 3.06
vs LECO: 14.29
Lincoln Electric Holdings (NAS:LECO) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Tools & Accessories subindustry, Lincoln Electric Holdings's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lincoln Electric Holdings ROA % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Lincoln Electric Holdings's ROA % distribution charts can be found below:
* The bar in red indicates where Lincoln Electric Holdings's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Mar. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Lincoln Electric Holdings (LECO) has a ROA % of 14.21% as of Mar. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Lincoln Electric Holdings and its competitors. This is 16% above median its historical median of 12.25. Over the past decade, Lincoln Electric Holdings' ROA % has ranged from 8.80 to 16.63. According to the industry distribution chart, Lincoln Electric Holdings ranks #160 out of 3081 companies in the Industrial Products industry, placing it in the top 5.2%.
Is Lincoln Electric Holdings' ROA % too high?
Lincoln Electric Holdings' current ROA % of 14.21% is 16% above median its 10-year median of 12.25. Over the past 10 years, this metric has ranged from a low of 8.80 to a high of 16.63. The Industrial Products industry median ROA % is 3.06. Lincoln Electric Holdings' value of 14.21% is 364.4% above this industry median. Based on the distribution chart, Lincoln Electric Holdings ranks #160 out of 3081 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Lincoln Electric Holdings has a GF Score™ of 97/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Lincoln Electric Holdings' ROA % compare to SWK and RBC?
According to the Industrial Products industry distribution chart, Lincoln Electric Holdings ranks #160 out of 3081 companies for ROA %. This places Lincoln Electric Holdings in the top 5% of its industry — outperforming the majority of peers. The industry median ROA % is 3.06. Lincoln Electric Holdings' value of 14.21% is 364.4% above this benchmark. Historically, Lincoln Electric Holdings' own ROA % has ranged from 8.80 to 16.63 over the past decade. While the company's 10-year median is 12.25 vs. the industry median of 3.06, Lincoln Electric Holdings has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for an Industrial Products company?
The median ROA % among Industrial Products companies is 3.06, based on 3,081 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Lincoln Electric Holdings's current ROA % of 14.21% is 364.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Lincoln Electric Holdings and its competitors. For the Industrial Products industry, the median ROA % is 3.06 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Lincoln Electric Holdings's current ROA % is 14.21%, which is 16% above median its own 10-year median of 12.25. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Lincoln Electric Holdings stock overvalued right now?
Based on GuruFocus' analysis, Lincoln Electric Holdings (LECO) is currently considered Modestly Overvalued. The stock's GF Value™ is $236.84, compared to a current price of $268.91 — trading 13.5% above its estimated fair value. The current ROA % is 14.21%, which is 16% above median its 10-year median of 12.25 and 364.4% above the Industrial Products industry median of 3.06. Lincoln Electric Holdings' overall GF Score™ is 97/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Lincoln Electric Holdings (LECO), the current ROA % is 14.21% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Lincoln Electric Holdings (LECO) Overvalued in 2026?
Based on GuruFocus' analysis, Lincoln Electric Holdings stock appears to be overvalued.
The current stock price of $268.91 is trading 13.5% above its estimated GF Value™ of $236.84.
GuruFocus considers Lincoln Electric Holdings to be Modestly Overvalued.
Key valuation signals for LECO:
ROA %: 14.21% (16% above median its 10-year median of 12.25)
GF Value™: $236.84 vs. price of $268.91 (13.5% above fair value)
Industry Position: 364.4% above the Industrial Products median (#160 of 3081)
No single metric tells the full story. See the LECO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Lincoln Electric is a leading manufacturer of welding, cutting, and brazing products. Its portfolio includes arc-welding solutions, plasma and oxy-fuel cutting systems, brazing and soldering alloys, and automation solutions. Lincoln Electric serves clients across general fabrication, heavy industries, automotive, construction, shipbuilding, energy, and process industries, among others. The company generated roughly $4.2 billion in sales in 2025.
97GF Score
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